Nine mutual fund providers will see stronger than average investment momentum from investors in 2012, according to a recent survey of affluent investors by Cogent Research. Vanguard and T. Rowe Price, followed by Fidelity Advisor Funds, Fidelity Investments, American Funds, Wells Fargo Advantage Funds, Schwab/Laudus Funds, J.P. Morgan Funds and ING Funds topped the list, which was included as part of Cogent Research's 2012 Investor Broadscape report released earlier this month.
The study found that over the past year, investors have significantly reduced the average number of fund families with which they work from 1.9 to 1.56. Also, current investors are three times more likely to increase investments with current managers as they are to redeem investments, an indication of strengthened loyalty to existing providers.
"A year ago, it was often the case that more clients were planning to give up on a manager than invest more money," said Cogent Research Principal John Meunier. "Today the opposite is true. Investors who stuck it out with their current managers are prepared to grow these relationships."
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As part of the report, Cogent determined the Affluent Investor Investment Momentum score for 27 leading mutual fund providers. Ratings were determined by calculating the average net score for all clients who plan to either increase or redeem investments. These results were then indexed to 100 and plotted on a continuum ranging from the lowest to highest possible score. This year, the average AIIM score across all providers was +23 percent, with results ranging from a low of -7 percent to a high of +34 percent. In 2012, there were only two firms with negative scores, compared to last year when there were seven negative and nine single-digit scores.
Cogent Research helps clients gain clarity, obtain perspective, and formulate direction on critical business issues. Founded in 1996, Cogent provides custom research, syndicated research products, and evidence-based consulting to leading organizations in the financial services, life sciences, and consumer goods industries.
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